The current week has been marked by a key point for Crypto investors, since this Friday, November 17, there will be a significant options expiration for both Bitcoin (BTC) and Ethereum (ETH).
According to data from Greeks.live, around 35,000 BTC options contracts are about to expire, with a notional value of approximately $1.28 billion and a put/call ratio of 0.49.
17 Nov Options Data
35,000 BTC options are about to expire with a Put Call Ratio of 0.49, a max pain point of $36,000 and a notional value of $1.28 billion.
270,000 ETH options are about to expire with a Put Call Ratio of 0.41, a max pain point of $1,900 and a notional value of… pic.twitter.com/5HDuKMaCqU— Greeks.live (@GreeksLive) November 17, 2023
In parallel, nearly 270,000 ETH options contracts are expected to expire, valued at around $530 million, with a put/call ratio of 0.41.
These expiration events come with a “max pain point” of $36,000 for BTC and $1,900 for ETH, which could influence price movements over the weekend.
THE ANALYSIS OF VOLATILITY IN THE BTC MARKET HAS BEEN RELEVANT THIS WEEK
While volatility in realized volatility proxies has shown an increase, implied volatility levels are expected to decrease, which has led to the decline in VRP (Volatility Risk Premium) to some extent.
Currently, realized volatility for BTC stands at around 55%, reflecting a 10% decrease compared to the previous week.
For its part, the realized volatility for ETH remains at 56%, without significant changes compared to last week.
This data becomes relevant when considering the potential impact that these option expirations may have on the prices of BTC and ETH, given that such events usually generate movements in the market.
The expectation that Ethereum can become a main driving force in the market, taking the lead, is based on this volatility situation and the put/call ratio observed in the options of both cryptocurrencies.
The big picture shows that the crypto market has undergone consolidation, retreating 2.5% from its recent high of almost $1.5 trillion and settling around $1.44 trillion.
Both BTC and ETH, have shown price declines, with BTC trading around $36,480 and ETH falling below $2,000 around $1,960.
